Madam Speaker, I will share my time with the member for Notre-Dame-de-Grâce.
My remarks will deal with the Montreal port, a major element not only in this country's shipping industry but also in intermodal tranportation and international trade.
The Montreal Port Corporation was created in 1983 by the federal government as a local port corporation, under the Canada Ports Corporation Act. In keeping with the national shipping policy, this port has been designated a Canadian port authority.
Our government's national shipping policy will ensure that the Canadian shipping industry continues to contribute significantly to the Montreal economy, by allowing the port to become even more commercially orientated.
Montreal is one of the busiest inland ports in the world and one of the main transatlantic traffic transfer centres. With its port, its international airport, its road and railway networks linking it to every corner of North America, Montreal is undeniably one of the hubs of transportation in the world.
Every year, the Montreal port contributes $1.2 billion to the economy of Montreal, Quebec and the country as a whole. It accounts for 7,400 direct jobs which, coupled with indirect jobs, amount to 14,000 jobs.
These economic benefits are more obvious with regard to the North Atlantic ocean. Of all the eastern seaboard ports, Montreal provides the most direct and fastest access to the main Canadian markets, as well as to American markets in the Midwest and the North East.
This is where transatlantic routes interconnect with the rail and freeway networks thus reducing the time and cost of door to door transportation of goods. Traffic back and forth is so important that it promotes economies of scale and allows shipping lines to offer regular and frequent services. Importers and exporters can fully profit from all the advantages of just in time delivery.
The Montreal Port Corporation is financially independent. Between 1984 and 1995, it generated total net profits amounting to $148.4 million. During that time, thanks to internally generated funds, the corporation invested $180 million in capital expenditures.
In 1987, the Government of Canada approved a transfer to the equity of the Montreal Port Corporation in the amount of $231 million, comprising $133 million in annuity certificates and $98 million in accrued interests on those certificates.
Therefore, between 1986 and 1995, the government wrote off part of the debt and accrued interests for a total of $231 million and the Montreal Port Corporation contributed $108.7 million to the consolidated fund of Canada in the form of a special contribution and dividends, so the net result was a positive difference of $122.3 million.
In 1995, the Montreal Port Corporation paid six million in grants in lieu of municipal taxes. On the other hand, tenants of the port paid directly $7.7 million in property, municipal and school taxes. Therefore, in 1995, the Montreal Port Corporation and its tenants jointly paid $13.7 million in grants in lieu of taxes, municipal taxes and school taxes.
Given those data and the economic impact of the port activity, we can conclude that not only is the port not a burden for the Canadian taxpayer, it is a real motor for the Canadian economy.
In the Montreal Port Corporation's business plan, investments or capital expenditures of almost $110 million are expected for the five-year period from 1996 to 2000.
With containers on top of the list, the total traffic of goods handled in the port of Montreal during the first six months of 1996 reached 9.3 million tonnes, an increase of 1.3 million tonnes or 16 per cent compared to the same period last year. There was a traffic increase in all categories of goods, except one.
During the first semester of 1996, the port of Montreal handled 3.9 million tonnes of various containerized goods, an increase of more than 570,000 tonnes or 17.2 per cent compared to the first six months of last year. We must recall that, for the whole of the year 1995, container traffic had reached an unprecedented level in the main Canadian container port, despite a labour dispute that paralysed activities on the wharves for 16 days last year.
For the first half of 1996, the port of Montreal has increased its share of the container market in a context of fierce competition. It has succeeded to fare better than its competitors on the North American east coast, and there is every indication it will be another record year in this sector.
The growth in freight traffic combined with tight control of administrative and operating costs had a positive impact on the Montreal Port Corporation's financial performance. As of June 30, 1996, the corporation's net profits amounted to $3.6 million compared to $1.1 million for the first half of 1995.
All user fees have been frozen for the fourth consecutive year. Additional improvements were made to the discount program put in place to stimulate container traffic, and rebates aimed at increasing other types of freight have been added.
A highlight of the first half of 1996 was the arrival of three brand-new containerships linking Montreal to northern Europe. Two of these three ships were christened in Montreal. Canada Maritime's Canmar Courage and Canmar Fortune each have a capacity of 2,200 TEU containers, while OOCL Canada, which
belongs to Orient Overseas Container Line, can carry 2,300 TEU containers.
These three deep-draft ships are currently the largest containerships sailing on the St. Lawrence. They are on the leading edge of technology and equipped for winter sailing. The commissioning of these three great vessels is further evidence of shipowners' confidence in the Port of Montreal's future.
The highlights of the first semester include improved carrier services between North America's industrial heartland and northern Europe and the Mediterranean, as well as the opening of a new fruit terminal operated by Logistec Arrimage Inc.
This shows the positive economic impact of port operations in the Montreal area on all trade activities linked to shipping.